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This is the published version of a chapter published in Natural resources and regional developmenttheory.

Citation for the original published chapter :

Knobblock, E. (2013)

Corporate Social Responsibility (CSR) in the welfare state: Experiences from mining

communities in Sweden.

In: Linda Lundmark, Camilla Sandström (ed.), Natural resources and regional development theory

(pp. 158-175). Umeå: Institutionen för geografi och ekonomisk historia, Umeå universitet

GERUM Kulturgeografisk arbetsrapport

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Permanent link to this version:http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-85149

158

Chapter 8. Corporate Social Responsibility (CSR) in

the welfare state: Experiences from mining

communities in Sweden

Erika Knobblock

Department of Geography and Economic History, Umeå University, Sweden

Introduction

The last 15-20 years the research field of social responsibility has grown significantly,

attracting international policy interest, most often under the heading of Corporate

Social Responsibility (CSR) (EU-COM 2006, De Geer et al. 2010, Brejning 2012). The

CSR concept has gained interest through the debate about globalization,

competitiveness and sustainability (EU-COM 2006). The outcome is a vast amount of

literature on the implementation and outcomes of CSR initiatives on companies.

However, the effects of CSR on society have been to a large extent neglected in

research (Banerjee 2010, Brejning 2012). As a result, little is known about the effects

of social responsibility initiatives on society and communities, and about the possible

differences between places and contexts.

Until the first decades of the 20th century, mining and other types of natural resource

extraction contributed to the establishment of new settlements and to development of

existing communities in Sweden. Mining companies were often the sole provider of

jobs and welfare in these emerging single-industry towns which lead to industrial

paternalism (Esping-Andersen, 1990, Tjärnström and Westerlund, 2000) and deep

loyalty of the townspeople towards the mining companies (Bergdahl et al. 1997). In

northern Sweden, community development, population development and

industrialization are closely connected to resource exploitation (Warg 2002, Sörlin

1988).

Today most resource communities in the developed world have diversified their

economy by complementing the resource economy with other economic activities

(e.g. Hayter 2000, Keyes 1992, O’Faircheallaigh 1992). In Sweden, industrial

paternalism has been replaced by a growing welfare state due to political decisions.

The idea was to provide welfare and service for the entire Swedish population, on

equal conditions, under the auspices of the public sector, independently of where in

Sweden a person was residing (De Geer et al. 2010, Schön 2010, Brejning 2012).

However, the welfare system has recently encountered difficulties in terms of funding

and is under strong critique for no longer delivering public welfare in a satisfying way

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(see, for example, Esping-Andersen 1990, Lundmark and Åmark 2001, Korpi 2003,

Lindert 2005, Brejning 2012). This put pressure on other stakeholders, such as

corporations and non-profit organizations, to step forward and take social

responsibility where the public domain failed to do so.

At the same time, substantial critique has been directed towards the global mining

industry (Hayter 2000, Dale 2002, Richards 2009). Environmental problems, poor

handling of mining problems in developing countries and reduced labor needs have

attracted negative attention for over a decade. Demand for CSR has increased during

this time (Cessford 2008). In 2012 the Australian Senate passed a 30 percent mining

tax on profits from iron ore and coal mining companies (Australian Government

2012). This and other CSR initiatives are increasingly recognized for delivering

sustainable benefits and improving the well-being of the communities in which the

mining companies operate.

The aim of this paper is to investigate the changing social role of the dominant

employer in single-industry resource towns. This will be done by presenting the

results of three case studies from Sweden, framing them with the literature on CSR.

The research questions are: i) how is CSR implemented in the Swedish welfare state

ii) How is CSR implemented by the mining companies and why do mining companies

use the concept of CSR when they act in a welfare state context? iii) How do

municipal representatives consider mining companies’ social responsibility

concerning the future development of the case study areas?

The three cases presented in this paper exist in two single-industry resource towns,

Boliden and Kristineberg, and also in Rönnbäcken where one deposit has yet to be

mined. All cases are situated in Västerbotten County in northern Sweden.

• Corporate Social responsibility

CSR is widely used and has become a standardized product by way of large

corporations and consulting firms which help corporations with developing CSR

strategies (Borglund 2006). Yet, there is no clear definition of CSR - in different

contexts, businesses and places the meaning of CSR differ. Therefore, the notion of

CSR becomes contradictory.

CSR is part of a wider research field of business ethics, where, for example, corporate

citizenship, corporate accountability and ethical investments are included (e.g.

Borglund 2006, Porter et al. 2006 and 2011). Social responsibility can be studied at

different levels of society (Borglund 2006). It can concern the relationship between

businesses and society, globalization, as well as initiatives taken by organizations for

increasing the implementation of social responsibility among companies. An example

of this is the United Nations Global Compact´s ten principles. That is a strategic

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policy initiative for businesses that are dedicated to support principles in the areas of

human rights, labor, environment and anti-corruption (UN 2012). There is also the

European Union´s Commission Green Paper on promoting a European framework

for Corporate Social Responsibility (EU-COM 2001).

Porter and Kramer (2006) argue that social responsibility, if used wisely, is a new

source of competitive advantage and income for businesses. Social responsibility

should preferably be a win-win situation where the society benefits from the

companies’ CSR initiatives at the same time as the companies increase their profita-

bility. There are broad CSR organizations where firms, through their membership,

demonstrate that the corporation takes interest in CSR. However, there are no

common requirements on how to implement CSR in these organizations. Instead the

implementation varies from addressing social issues, environmental issues or more

philanthropic projects (Borglund 2006, Porter et al. 2002). Nor is there any

international CSR certification from ISO (International Organization for Standardi-

zation) available, as in the case of ISO 9001:2008 (quality management) or ISO

14001:2004 (environmental management systems). However, there is an ISO 26000

standard which gives guidance on CSR (ISO 2012). The Global Reporting Initiative

(GRI) is a non-profit organization promoting economic, environmental and social

sustainability, and also provides companies with sustainability reporting frameworks

and guidance, which is used all over the world. Corporations address CSR issues in

various ways: through annual reports, by specific CSR reports, by implementing CSR

strategies on workforce or workplace related issues, or within the geographical

location where the corporations are active, which then might have implications for a

larger part of the population apart from the employees.

The widespread use of CSR makes it difficult to define (Brejning 2012, De Geer et al.

2010). The CSR concept very much depends on the context in which it is used (De

Geer et al. 2010, Whitehouse 2006, Windell 2006). For instance, in developing

countries CSR can be about safety regulations or unhealthy working conditions. In

developed countries, and especially in welfare states, CSR often refers to community

development because there are legal systems in use regulating working hours, salaries

and safety for workers. The European Union has defined CSR as “a concept whereby

companies integrate social and environmental concerns in their business operations

and in their interaction with their stakeholders on a voluntary basis” (EU-COM

2006). This view departs from a corporate centered idea of CSR, where the firm is

seen as the driving force in efforts that relate to social issues (De Geer et al., 2010).

The European Union uses CSR to preserve common values and increase “the sense of

solidarity and cohesion” among the member states (EU-COM 2006).

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The corporate centered idea of CSR is partly in conflict with the situation in a welfare

state. In Sweden, the solution has been to reshape the concept and use it in a flexible

way. This is possible since CSR is voluntary and regarded as soft regulation (De Geer

et al. 2010). The flexibility allows “escape routes” when CSR enters a welfare context

such as Sweden, meaning that firms can engage in other issues than those decided by

politicians and funded by the welfare state (De Geer et al. 2010, Brejning 2012). As a

consequence, CSR has become a well established concept in Sweden (De Geer et al.

2010). Within the political discourse, the debate about CSR moves along a political

left-right scale, where regulations on businesses, profits, ethical investments and the

need for growth often are debated from an ideological basis. CSR arguments can be

used in negotiations or for putting pressure on corporations that do not act ethically.

CSR arguments are also increasingly used in the debate about which ethical and

social responsibilities Swedish companies have, both in Sweden, and when they act

abroad.

• CSR in the mining industry

Mining companies’ trustworthiness has been questioned among the public and

substantial critique has been directed towards the global mining industry (Hayter

2000, Dale 2002, Richards 2009). The industry was difficult to influence in the 1990s

and they only budged if there were demands set by legislation (Cessford 2008). The

interest of CSR has since then increased (Cessford 2008) and the legislative

framework has also been modified (Liedholm-Johnson 2010). Today CSR initiatives

are increasingly recognized for delivering sustainable benefits and improving the

well-being of the communities in which the mining companies operate. Companies

taking interest and actions in CSR are more likely to gain respect and increase

business with governments that are accountable to their citizens (Humphreys, 2000).

There are today several CSR-organizations focusing on the extractive industries. The

ICMM (The International Council on Mining and Metals) set out to improve

sustainable development work within the mining and metals industry (ICMM, 2012).

Among their members are some of the world’s largest, but perhaps also the most

criticized, mining companies, e.g., BHP Billiton, Anglo American and Rio Tinto.

Another member is the European Association of Mining Industries, Metal Ores and

Industrial Minerals (Euromines) which represents the interest of the European

extractive industry. Euromines, in turn, has a number of Swedish members. Among

them is Boliden AB, the founder of Boliden and Kristineberg´s mines and resource

towns. The foreign mining company, Nickel Mountain AB, which runs the

Rönnbäcken deposit, however, is not a member.

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In Sweden and other developed countries, CSR in mining are voluntary actions going

beyond legal obligations or collective agreements. The Swedish Mineral Act, the

Swedish Environmental Code (MB) and the Planning and Building Act (PBL)

regulate, for example, the establishment of new mining operations, payments to

landowners and environmental effects of mining. The rights and obligations of

stakeholders are thus continuously being redefined. More and more obligations deal

with the relation with the landowner and with the protection of the environment

(Liedholm-Johnson 2010). Environmental measures taken by a mining company can

only be regarded as part of a CSR policy if the measures surpass legal regulations.

In mining, it has become more efficient to work with local stakeholders and through

this solve potential social-, economic and cultural issues, and also answer questions

regarding resettlements, land acquisition, indigenous peoples and community health

and safety (Lyncoln 2008). The collaboration forms vary widely. This can partly be

explained by differences across the mining nations in mining legislation, ownership,

the existence of indigenous peoples, different traditions concerning mining

operations and geographical distance between mines and population centers.

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• Methods and materials

A qualitative case methodology approach has been chosen for this paper. The

rationale behind this is that it is difficult to find comparable quantitative data

concerning CSR-initiatives in Swedish mining communities. Furthermore, the

situation regarding the organization of welfare services is complex in many resource

towns. The paper is based on interviews with chief executive officers and managers at

Boliden AB and Nickel Mountain AB owner IGE Nordic. Boliden AB was chosen

because of its dominance and long presence in northern Sweden, where they have

been mining since the 1920s, making the company an important player in

Västerbotten County’s economic and social development. Nickel Mountain AB, on the

other hand, has no production yet. Instead this company provides an interesting case

of how the planning process is handled, on municipal and state level, when foreign

mining companies invest in Sweden.

Further interviews were conducted with urban planners, environmental officers and

directors of business, trade and industry in the municipalities of Lycksele, Skellefteå

and Storuman, where the aforementioned companies have mines or deposits.

Supplementary information regarding, for example, the companies´ work related to

CSR has been collected from the companies’ web sites, annual reports and also from

media reports.

• Setting the scene

There is a concentration of mining activities in northern Sweden. Areas affected by

mining are characterized by a sparse population structure and a demographic

imbalance with a declining and aging population. The labor market is nowadays

concentrated to tertiary service activities (SCB 2012).

The three cases presented in this paper are all situated in Västerbotten County where

the mining sector represents less than 1 percent of total employment in 2007

(Knobblock and Pettersson 2010). The national mining company, Boliden AB,

established Boliden as a resource town in the Skellefteå municipality during the

1920s. The Kristineberg mine and resource town, in Lycksele municipality, was

established by Boliden AB in the 1930s. The Rönnbäcken deposit is a new mining

project situated in Storuman municipality and is still in the planning phase. The

project is run by Nickel Mountain AB, a subsidiary of IGE Resources AB, a

Scandinavian mineral resource development company (IGE 2012). Rönnbäcken is

located in an area with competing land uses in the form of reindeer herding, forestry,

nature preservation and tourism. There are also two smaller towns situated nearby.

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Kristineberg and Rönnbäcken are mining deposits of national interest which means

that these projects are prioritized compared to other land uses (SGU internet 2012).

During the era of industrial paternalism, roughly between the 1920-1940s, Boliden

AB governed and dominated their mining communities in terms of housing, services,

jobs and leisure activities (Althin 1945, Tjärnström and Westerlund 2000, Lundqvist

1980, Lundgren 2006). During the first half of the twentieth century different types

of social movements claimed social or welfare rights in Sweden (Warg 2002,

Johansson 1980). Consequently, alternatives to industrial paternalism were

introduced and new laws based on liberal or social conservative ideas established

public welfare (De Geer et al. 2010). The paternalistic era ended somewhere around

the 1940s, when a transition towards welfare driven development, financed by the

Swedish state, gradually became more important.

Figure 1: Boliden mining community in 1930. Source: Kulturarv Västerbotten

The mining communities built by Boliden AB, were turned over to the municipalities

in the 1960s. They were at the time still prosperous communities. Today

Kristineberg´s mine is still in operation. The Boliden mine closed in the 1960s, but

there are still some mining related jobs available in the town. However, both resource

towns are facing problems. In the media, neglected and abandoned housing,

emigration, social and environmental problems dominate the reports from these

towns. Changes in the mining sector has had negative consequences both for

individuals, in terms of unemployment and declining values on properties, and the

resource towns in terms of reduced tax revenues, higher levels of social payments and

negative population development, leading to a situation where these places can be

seen as resource hinterlands (c.f. Gunton 2003, Hayter et al. 1990).

• Results

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Since the era of industrial paternalism several issues that in developing countries are

seen as part of the CSR-concept have become mandatory by Swedish law. Among

these issues are, for example, human rights, safer and cleaner working conditions,

decreased pollution and lower emissions due to energy consumption. These

initiatives can therefore not be seen as part of Swedish mining companies’ corporate

social responsibility. Then what is CSR in the three cases and in a welfare state? From

analyzing interviews with mining stakeholders and annual reports from the mining

companies, one conclusion is that companies refer to CSR both in the case of

voluntary actions to reduce negative economic, social or environmental impacts, and

to improve living conditions of the communities where they operate. However, they

also use the concept of CSR when they describe legal requirements, which should not

be the case.

Implementation of CSR In annual sustainability reports the mining companies proclaim how they work to

lessen the negative impacts of mining operations. It is mostly sustainability issues the

companies refer to, both in terms of pollution and in terms of their own financial

situation. As previous research has pointed out, both companies’ CSR-documentation

are inspired by standardized products (see for example Borglund 2006) which differ

little from other mining companies’ strategies. Furthermore, there are differences in

how the companies define CSR. However, this is not unusual, as the previous sections

have revealed.

Boliden AB´s CSR-work has been formalized in the “Boliden CSR criteria” (Boliden

2012:1) and in Boliden´s “Code of conduct” (Boliden 2012:3). The company states

that,

(CSR) is crucial for a sustainable mining and metals industry. Boliden wants to

move forward together with our business partners to live up to standards of

corporate ethics that are internationally accepted. (Boliden 2012:2).

The company controls risks and improves its business by evaluating its own perfor-

mance and that of their business partners from a CSR perspective, using both self

assessments and audits. The CSR evaluations are based on the United Nations Global

Compact´s ten principles, ILO and ISO standards. Their sustainability report consists

of two parts: one that describes their social, environmental and economic

responsibility and another report written according to the GRI-reporting framework.

The sustainability report has however not been reviewed by an external party. In

Boliden´s quarterly reports, “sustainability” foremost refers to the company’s

internal matters, such as absence from work, recruitment and frequency of accidents.

Boliden does invest in utilizing environmentally friendly technology and it follows

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environmental standards that go beyond legal requirements. One example of this is

their attainment of the ISO 14001:2004 standard. They also support local leisure

activities by sponsoring sports. Below in Table 1, examples of benefits given by

Boliden AB during the paternalist era and today are presented. There is also a column

declaring if this benefit is mandatory by Swedish legislation or not in year 2012.

Table 1: Benefits given by Boliden AB mining company

Type of benefit paid for by

the mining company

Paterna

list era

1920-

1940

Contem

porary

time

Mandato

ry by

Swedish

law 2012

Housing Yes No No

Infrastructure Yes No* No

Power plants Yes No No

City plans Yes No No

Schools Yes No No

Community centers Yes No No

Entrepreneurship

incentives e.g., the start-up

of business activities such

as sawmills, manufacturing

and carpentry companies.

Yes No No

Public services; healthcare,

childcare

Yes No No

Leisure activities Yes Yes No

Culture activities Yes Yes No

Indirect** economic

development/ economic

responsibility

Yes Yes No

Working conditions No Yes Yes

Human rights No Yes Yes

Environmental

responsibility

No Yes Yes

Product liability No Yes Yes

Sustainability reports No Yes Yes

Energy consumption and

pollution

No Yes Yes

*Only smaller roads for accessing the mines. **Concerns local economic growth, through for example

hiring local people or using local suppliers which generates taxes and other incomes to the community.

Nickel Mountain AB participates in the United Nations Global Compact and is

implementing the ILO conventions regarding working conditions. Its work

concerning CSR is formulized in its “Code of Conduct” from 2008 (Nickel Mountain

2012:2), in which the company leaders state that its future work concerning CSR will

be reported according to the GRI-reporting framework. The company is in the

process of “formalizing and structuring” its CSR-work. This work also includes

informing, not only their own staff, but also their partners, customers and other

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stakeholders about their CSR guidelines. Nickel Mountain AB states that it takes its

social and environmental responsibility very seriously, in both its “Code of conduct”

and during the interview. Nickel Mountain AB has for a long time invested time and

money in establishing contacts and deepening the dialogue with the population close

to the deposit. One example is the opening of an information office in Storuman

municipality during 2012 (Nickel Mountain 2012:4).

Aside from having various CSR-strategies, both companies argue that they take an

economic responsibility where they are located or, in the case of Nickel Mountain AB,

where they plan to open a mine. This economic responsibility concerns local

economic growth through, for example, hiring local people, using local suppliers or

subcontractors which are activities that generate taxes and other incomes for the

municipality. Boliden AB emphasizes that it has approximately 7,000 suppliers and

business partners of which 80 percent are located close to Boliden´s operations

(Boliden 2012:2).

Both mining companies prefer hiring local personnel with Swedish language skills,

local contacts and knowledge about the Swedish society, mostly for overcoming

language barriers and to handle, for example, public relations. They see clear win-win

situations in this arrangement, both for their own financial performance and for the

continued existence of the resource towns. There is, however, a noticeable gender

imbalance in the regional mining sector, which today means that mostly men are

recruited (Knobblock and Pettersson 2010). Nickel Mountain AB has a goal of hiring

half men and half women (Nickel Mountain 2012:3). This is seen as positive by the

municipality representatives in Storuman´s municipality, even if the respondents

believe that this goal can become difficult to achieve due to the long-term dominance

of men in the sector. One respondent even stated that the public regard “mining

being something only for men”.

Boliden AB has for a long time tried to employ more women. However, there are few

women applying for jobs at Boliden AB. If in the future mining shall have an equal

impact on all members of the society, and men and women’s daily life in the

municipalities, a shift in attitudes towards jobs in the mining sector is needed. Today

there is a common understanding among several of the respondents that the public

divides jobs as either “male” or “female”, which causes inequalities on the local labor

market, in terms of lower income levels in sectors dominated by women.

Why work with CSR? CSR has become an integral part of mining companies’ work to gain acceptance by

the local population, and others such as non-governmental organizations. Boliden AB

has today become a transnational corporation (TNC) with high demands on financial

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performance. One result of this is less focus on, or investments in the former home

region. Another result is the reestablishment of a headquarters outside the historical

home base Västerbotten. The gap between the population in the resource towns and

Boliden AB has therefore grown. In such a situation, Boliden AB needs to implement

CSR-strategies for gaining acceptance and become more transparent. For foreign

mining companies, such a Nickel Mountain AB, there is an initial lack of trust and

communication between the company and local mining communities, which the

company and the municipal representatives were well aware of during the interviews.

Both the mining companies and representatives from the municipalities’ gave a

unanimous view of the importance of CSR initiatives to facilitate good

communication and avoid unnecessary conflicts. Nickel Mountain AB states that

long-term investments are dependent on support from the local community, and

therefore they “strive to establish a good, mutually profitable cooperation with the

local communities” where they operate. This is in accordance with Porter and

Kramer’s (2006) findings that CSR can be seen as a way of securing incomes and

having a competitive advantage in business. Another argument put forward is that

mining employs less people today. In the future it is likely that increased productivity

will result in even lower employment needs. The companies hope that their CSR-

initiatives shall decrease the negative effects of this change or at least make the

changes more comprehensible for the local population.

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Municipal experiences of mining and CSR In Skellefteå and Lycksele there are positive attitudes towards mining and the image

of these municipalities are likewise closely connected to mining. The interviewees

explained this in terms of the long history of mining in the area. Furthermore, the

sector is seen as important because of new mining investments and job possibilities,

which can lead to economic growth and regional development.

“Mining concerns everyone. With new mining investments…there is a hope that it

will lead to societal development”

Since mining is of national interest according to the Swedish Environmental Code,

interviewees working at the municipalities see it as their role to facilitate mining, but

at the same time they also acknowledge that they must reduce any negative effects of

mining. In the case of Storuman municipality there was a complex sentiment towards

mining. The arguments went back and forth; a new mine in Rönnbäcken can of

course provide jobs and may strengthen already existing townships and the

municipality as a whole in terms of service provision and income from taxes, but

mining can also threaten other land uses.

There are no agreements regarding CSR-initiatives between the two mining

companies and the three municipalities. The notion of CSR was in fact to a large

extent unfamiliar to the interviewees working as urban planners, environmental

officers or directors of businesses. One representative in Lycksele stated that it was

not until they were contacted about this study that they began to discuss Boliden

AB´s social responsibilities as former owners of Kristineberg and how to involve

Boliden AB in plans for the community. The municipality, together with a local

community group, has tried to sort out problems with deterioration in Kristineberg,

and due to recent political decisions parts of the mining community will be

demolished at the expense of the municipality to improve the overall quality of the

town. One representative from Lycksele said, “Boliden (AB) could, and maybe should,

do more in the case of Kristineberg but we do not know how to involve them.”

There is a lack of knowledge in the municipality about how to work with CSR together

with the mining companies, which also was acknowledged by representatives in the

municipalities of Storuman and Lycksele in the following quote:

The municipality needs deeper knowledge about CSR and we must present our ideas

in such a manner that the mining companies respond to it positively. If we, in the

future shall succeed, we must have a person who really knows this topic.

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Interviewees in Lycksele did not work actively to encourage CSR-initiatives because

they presumed that it will not lead anywhere. One explanation is that CSR is soft

regulation. Instead the municipality has chosen to focus on the existing legal

framework. It is clear that Swedish municipalities lack possibilities to “force” the

mining companies to take a more active role in the development of old mining

communities. One person said, “We can hope and plea to them to do certain things,

but we do not have anything to put against them if they don’t”.

The explanation given by the respondents from Storuman and Lycksele regarding this

situation is that it is the County Administrative Board (the state’s representative in

each region) that controls whether or not companies fulfill legal demands, and other

authorities decide about mining permissions. By this arrangement, municipalities

have a weak power relation vis-à-vis the mining companies (or other actors such as

the Swedish state) especially since mining often is identified as an activity of national

interest, giving it a privileged position in the Swedish planning system.

Even if the notion of CSR is relatively unheard of amongst the respondents, one

urban planner stated that social responsibility in mining gradually had been growing

stronger during the latest years, but it was solely due to increased legal demand

rather than a voluntary basis. However, the changes in legislation cover mostly

environmental issues, not social or economical. The strong focus on the environment

means that the municipalities’ environmental experts usually work closer with the

mining companies, compared to the urban planners.

There will be a Social Impact Assessment of the planned mine in Rönnbäcken. This

assessment can be used as a tool for handling CSR-related issues, one respondent

argued, and perhaps even for making collaboration contracts between the company

and the municipality. Both Storuman and Lycksele are carefully following the

development in Sweden´s other mining regions in order to learn more about how to

work better together with the mining companies. The interviews suggest that mining

operations that still are in the planning phase involve more professions at the

municipal level than ongoing mining projects. Furthermore, demands from local

communities and municipalities appear to be higher in new mining projects. The

local opposition regarding Nickel Mountain AB´s investments has also been higher

than comparable mining investments in the Västerbotten region and the company

has therefore been eager to develop a good communication and dialogue with the

local communities and municipality.

Today mining investments mainly refer to investments in the mine, not in the

surrounding landscape or communities. Nevertheless, Boliden AB supports other

initiatives that can benefit the mining company further on, such as mining related

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education. In the future there will be a lack of human resources available. A director

of enterprise also saw benefits from working together with Boliden AB to increase the

level of entrepreneurship in the community.

• Concluding discussion

Mining’s negative social and environmental impacts have received increasing

attention during the last decades. However, Hamann and Kapelus (2004) have

argued that CSR efforts sometimes are nothing more than PR-campaigns. In these

cases the CSR initiative will fail to generate real social change. It is rightful to say

that the effectiveness of CSR in mining is difficult to evaluate because CSR-success is

mostly “measured in terms of what doesn’t happen rather than what does”

(Humphreys 2000).

Interviews with urban planners and environmental officers in Lycksele municipality

show that few of the mining companies’ CSR-statements reach down to the municipal

level and that the mining companies could do more. CSR-initiatives in the three cases

appear to be a question about personal contacts and about power structures which

are not always transparent. Municipalities are also facing other problems in relation

to mining. Communities must increase their attractiveness, so people choose to settle

down and stay. Municipalities have, according to Swedish law, a planning monopoly.

However, since mining is often seen as a national interest, the municipalities lack a

veto against mining. Furthermore, permits and inspections of mines are done by state

authorities, not the municipalities. By this arrangement, municipalities have only

small chances of influencing the decision making regarding mining investments, and

risk facing unnecessary loss of local benefits. This phenomenon called a ‘fly-over

effect’ has been described by Storey (2001) in an Australian context.

In the past one could argue that raw materials were exchanged for welfare in single

industry resource towns (Westin 2006). Today the Swedish state and municipalities

are responsible for providing public welfare and services. Natural resources are in the

best case exchanged for jobs. Local communities no longer see as many benefits from

the mining industry as they used to. People, especially younger persons, are instead

engaged in the environmental costs of mining. This shall not be left without measures

being taken since research by Humphreys (2000) and Kemp et al. (2006) has shown

that opposition to mining operations can lead to blockades, vandalism and delays

which can become costly and even result in closures. It is therefore important for

mining companies to have the local population´s consent.

In a report from 2002, the World Bank and the International Finance Corporation

argue that from a community’s perspective, CSR can be one mechanism to

compensate for social and environmental costs associated with mining. One solution

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is to increase knowledge about social and environmental costs associated with

mining. Another solution could be to increase entrepreneurship in the area and put

efforts into starting up new firms or expanding businesses in the mining sector,

which, for example, Skellefteå municipality and Boliden AB are trying to do. More

women are also working in the mining sector, which are positive for the social

sustainability, wage levels and gender equality. Nonetheless, in the long run, mining

of single deposits is a short term solution, with clear boom and bust periods.

How is it then possible to secure a positive long term development in the selected

municipalities and mining communities? And how should this be funded when

neither the state nor the mining companies are willing to invest more money? Today

there is a political consensus about an even welfare distribution in Sweden, through a

tax equalization system which equalizes the tax capacity of municipalities. Perhaps

there are also lessons to be learned from the Australian “Minerals Resource Rent

Tax”, from which revenues will be used for a tax relief for other types of businesses,

for expenditure on infrastructure and retirement savings (Australian Government

2012). In a situation where population levels are declining and the municipalities

have problems with their economy, a similar Swedish tax law could help the mining

communities to change the structural problems they stand before.

173

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Presentations

Cessford, F. (2008). Project Financing. Implications for Environmental Social Impact Assessment. SRK consulting. Presentation held at Euro Mine Expo, October 2008, Sweden.

Lyncoln, K. (2008). Forging Partnerships to Resolve Conflict. Facilitating Mine Development by Resolving Socio-Cultural Issues. AMEC Geomatrix. Presentation held at Euro Mine Expo, October 2008, Sweden.

Photo credits

Boliden mining community in 1930. Kulturarv Västerbotten. SMBOL 4286. Stadsbild. Flygfoto. http://kulturarvvasterbotten.se/CgiText-GetRecord?Table=fg_Foton&ID=4230&Formname=/sok/plats/blankett_foto.html&Incl=000000000033&Recnr=218